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India’s GDP rebound offers comfort to Narendra Modi’s government

Data shows growth rate reached 6.2% but still well below levels needed to hit PM’s long-term goals

India’s economic growth has rebounded after bountiful harvests boosted rural consumption and the government of Prime Minister Narendra Modi ratcheted up spending.

Government data on Friday showed India’s GDP grew 6.2 per cent in the quarter to the end of December from the same period a year earlier, offering some relief to Modi, who has recently sought to cushion the squeezed middle-class.

Growth was up from the revised 5.6 per cent in the three months to the end of September, but below the 6.3 per cent forecast by a Reuters poll of economists and the central bank’s 6.8 per cent estimate.

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